A worked cost example
This illustration uses a Payday loan of R2 000.00 for 30 days from 1 November 2026, at 5% monthly interest with the Welcome benefit. It is not a live quotation.
- Amount you receive
- R2 000.00
- Interest (5% per month)
- R100.00
- Initiation fee incl. VAT, before benefit
- R304.75
- Welcome benefit if applicable
- −R20.00
- Service fee incl. VAT
- R69.00
- Credit-life insurance
- R0.00
- Total to repay
- R2 453.75
The cost of borrowing is R453.75, the difference between money received and total repayment. Fees include assumed VAT. No credit-life insurance is included.
Changing the amount, term, start date or benefit changes the example. Use the calculator to compare those changes, then check an actual provider’s dated quotation before any agreement.
Read each charge once
Interest is only one part of the price. A quotation may also include an initiation fee, a service fee, applicable VAT and credit life insurance. Check which charges apply to your agreement and which amounts already include tax. Do not add VAT again to a fee described as VAT inclusive.
Our costs and fees guide explains the components used in the RandHaven design examples. Those examples do not replace an agreed quotation.
A voluntary fee discount should have a clear amount, an eligibility rule and a visible effect on the final total. Compare it with the same loan without that benefit. Changing the amount or repayment period at the same time makes the saving harder to understand.
A statutory limit on charges is not a special loyalty reward. Also check whether a benefit is already included in the advertised total, so you do not subtract it twice.
Match the total to the payment date
For a single-payment loan, the scheduled payment should match the total repayable. For instalments, add every payment, including any different final amount. Then match each date against when income is actually expected, leaving enough for essential expenses and existing commitments.
If an amount in the schedule differs from a headline figure, ask for a written explanation before accepting. Keep the explanation with the quotation rather than relying on a telephone conversation you may remember differently later.
Before proceeding, note the money received, total repayment, due date, charges and questions still unanswered. If the repayment leaves no workable room in your budget, revisit the need or consider a smaller amount; a lower advertised rate cannot fix an unaffordable payment.
Read repayment guidance and use the contact page to clarify anything you cannot reconcile. There is no need to rush past a cost you do not understand.